Security Considerations for Industrial Real Estate
Not every industrial property needs the same level of security. Find out what you need to know about securing your facility.
Every commercial real estate investor should get familiar with securing their properties, though different types of buildings require a different approach to ensuring people, products, and vehicles are secure, both from accidents as well as crime — including theft and vandalism.
Considerations for Securing Your Industrial Facility
For an industrial asset, common approaches to security include traditional motion sensors, alarms, and video cameras, but other preventative measures may be called for, like increased lighting systems or gated truck courts. However, to determine how you should approach security at your property, consider three main factors.
First, is your industrial property located in an area significantly affected by property crime or theft? If you would not feel comfortable walking around the area after dark, your tenant’s employees may not be either. Installing extra lighting in truck courts and parking lots may help, but depending on the level of risk, many industrial operators opt to have a security booth onsite, manned by security personnel.
How late will your tenant be on-site each day? Is it a round-the-clock operation, or just a manufacturing or distribution facility with workers coming in during the day? Based on this assessment, you can tailor a security program that suits your property’s needs without draining your budget unnecessarily. While it may be ideal to have a security team on-site 24 hours a day, a smaller building may be secured just as effectively at night by one person instead of a two- or three-person team.
Finally, are valuable goods kept on-site? If you own, for example, a distribution center that stores products, extra security can be a boon — especially if those items are worth significant capital. This doesn’t just apply to goods passing through your facility, however, but also includes things like high-end equipment and even extends to items kept in trailers overnight — or vehicles in the truck court.
What are the most important security considerations for industrial real estate?
The safety of an investment is a huge factor in deciding whether purchasing a property is a good idea for an investor. There are a couple of factors to look at here, including an investor’s personal knowledge of the real estate in a particular area. For example, if you were to buy a commercial property in your neighborhood, where you’ve lived for years, it could be much safer than purchasing property in another state, where you are much less familiar with the market. Additionally, the riskier the investment, the higher rate of return you should expect. For instance, if you were purchasing a Class B or C office building in a somewhat run-down or up-and-coming area, you would want a significantly higher rate of return than you would for a premiere, Class A office building in an expensive metro area.
When it comes to industrial real estate, the most important security considerations include the structure’s column spacing, clear heights, electrical supply, or floor thickness. These are all important to some extent, as they can affect the safety of the building and the investment.
What are the best practices for securing industrial real estate?
The best practices for securing industrial real estate depend on the type of investment you are making. For example, if you are looking to purchase a Class A logistics center, you should consider the building's column spacing, clear heights, electrical supply, and floor thickness. Additionally, you should look for features such as loading equipment, parking, and other exterior and interior considerations. If you are looking to purchase a Class B asset, you should consider the potential for repositioning the asset to increase its value. You may also want to consider taking out a fix-and-flip loan to help finance the repositioning. Sources: What to Know Before Making Your 1st Industrial Property Investment
What are the most common security threats to industrial real estate?
The most common security threats to industrial real estate include theft, vandalism, and natural disasters. Theft can be a major issue for industrial properties, as they often contain valuable equipment and materials. Vandalism can also be a problem, as it can damage the property and disrupt operations. Natural disasters, such as floods, hurricanes, and earthquakes, can also cause significant damage to industrial properties. Additionally, cyber security threats, such as data breaches and ransomware attacks, are becoming increasingly common and can have a major impact on industrial properties. For more information on cyber security threats, see this article.
What are the best ways to protect industrial real estate from theft?
The best ways to protect industrial real estate from theft are to ensure the property has secure truck courts or trailer parking, and to invest in assets with top-of-the-line loading equipment. Additionally, investing in a Class B asset at a lower price point and bringing it up to speed with modern features can help protect the property from theft. Parking ratio and value-add commercial properties are important considerations when investing in industrial real estate, and fix-and-flip loans can help finance the repositioning of a dated industrial facility.
What are the best ways to protect industrial real estate from vandalism?
The best ways to protect industrial real estate from vandalism are to install security cameras, motion-sensor lighting, and fencing. Security cameras can help deter vandalism and provide evidence if it does occur. Motion-sensor lighting can also help deter vandalism by making it difficult for vandals to remain undetected. Fencing can also help protect industrial real estate from vandalism by making it difficult for vandals to access the property. Additionally, it is important to ensure that the property is well-maintained and that any graffiti is removed quickly.
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What are the best ways to protect industrial real estate from natural disasters?
The best way to protect industrial real estate from natural disasters is to ensure that the building is up to code and meets all safety requirements. This includes making sure that the building is structurally sound, has adequate fire protection, and is equipped with emergency power and backup systems. Additionally, it is important to have a comprehensive insurance policy in place that covers natural disasters, such as floods, earthquakes, and hurricanes. Finally, it is important to have a plan in place for how to respond to a natural disaster, such as evacuation plans and emergency contact information.
For more information on how to protect industrial real estate from natural disasters, please see this article from CommercialRealEstate.Loans.